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Ambani groups trade charges yet again

Our Bureau

ADAG alleges dishonouring of gas supply pact; RIL refutes charge

New Delhi , July 25

The continuing spat between the Ambani brothers broke out in the open once again on Tuesday, with the Anil group (ADAG) alleging that the Mukesh group (RIL) was "systematically violating every major commitment of the June 2005 settlement."

The allegation was promptly refuted by an RIL spokesperson.

Saying that "we have had enough," sources in the ADAG alleged that the Mukesh group wanted to dishonour the June 2005 agreement on gas supply to Reliance Energy at agreed prices and the commitment to NTPC to supply gas at the agreed price.

Gas supply to Reliance Energy's proposed power plant in Uttar Pradesh is supposed to be linked to the price charged from NTPC by RIL.

RIL's agreement with NTPC for supply of gas for the Kawas and Gandhar projects has run into trouble; the matter is now in court.

Recently, the Union Power Secretary, Mr R.V. Shahi, wrote to the Cabinet Secretary, Mr B.K. Chaturvedi, that an out-of-court settlement seemed unlikely, as RIL was unwilling to sell gas at the agreed price since gas prices have gone up considerably since the pact was signed. Reacting to the charges, the spokesperson of RIL said that the current set of issues raised by ADAG "are an attempt to divert attention away from the shockingly petty acts of harassment of RIL employees at the Dhirubhai Ambani Knowledge City."

The spokesperson added: "Propagation of false and baseless allegations relating to RIL's intent to dishonour its commitments is clearly intended to instigate entities with whom RIL has a long history of excellent business relationship. These are malicious allegations and are denied."

Stating that RIL had always fulfilled all its obligations and commitments and would continue to do so in future, the spokesperson said: "If ADAG has any grievances, it should approach the appropriate forum for resolution."

Related Stories:
Mukesh, Anil groups strike different notes
Ambani brothers clash again — Mukesh refutes Anil's charges on non-transfer of business control
Gas deal fuels Ambani spat

More Stories on : Petroleum | Corporate Disputes | Reliance Industries Ltd | Reliance Energy Ltd

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